Samsung Foundry is on the cusp of a major turnaround, driven by stabilizing yields on its advanced 2nm Gate-All-Around (GAA) process node. As TSMC’s production capacity hits limits, Samsung emerges as a viable alternative for chip giants like Qualcomm, potentially securing high-profile orders for next-gen Snapdragon processors.
Recent reports highlight Samsung’s progress, with 2nm GAA yields finally stabilizing after years of challenges. This comes at a critical time: TSMC, which commands about 70% of the foundry market, faces bottlenecks in its 2nm N2P node capacity. Analysts predict these shifts could propel Samsung’s foundry division—long plagued by losses—into profitability by 2027, with estimated operating profits reaching $69 billion.
Overcoming Years of Losses
Samsung’s foundry business has bled red ink since 2022, posting a staggering 7 trillion won (~$4.8 billion) loss in 2025 alone. However, KB Securities research head Kim Dong-won forecasts a full recovery next year. Key factors include ramped-up operations at profitable 4nm and 8nm nodes, alongside the 2nm breakthrough.
The Taylor, Texas facility plays a pivotal role in this revival. Samsung has poured over $37 billion into the site, planning EUV testing for 2nm GAA production starting in March 2026. This shift from 4nm lines has already attracted orders from AMD, possibly for EPYC Venice CPUs, signaling growing client trust.
Qualcomm Partnership on the Horizon?
Qualcomm, a longtime Samsung customer, could be next. With design work complete on the Snapdragon 8 Elite Gen 5, the chipmaker eyes 2nm for future flagships like the Snapdragon 8 Elite Gen 6 Pro. While TSMC’s N2P node might handle initial mass production, Samsung’s 2nm GAA could produce the standard Gen 6 variant in the latter half of 2026.
Past issues with Samsung’s low yields soured the relationship, pushing Qualcomm toward TSMC. But stabilizing performance and TSMC constraints change the equation. Beyond Qualcomm, Samsung eyes orders for Tesla’s AI chips, further diversifying its client base.
If these trends hold, 2027 could mark Samsung Foundry’s long-awaited profit milestone, reshaping the semiconductor landscape.